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Bill

HB 552

TAX/EXCISE: Levies a tax on the operation of carbon capture and storage pipelines (OR SEE FISC NOTE SG EX)

2025 Regular Session Introduced by Rodney Schamerhorn

Louisiana bill imposes excise tax on carbon capture and storage pipeline operations, potentially affecting industry investment and state revenue.

Read by title, under the rules, referred to the Committee on Ways and Means.
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Bill Summary · HB 552

Legislative bill overview

HB 552 proposes to impose an excise tax on the operation of carbon capture and storage (CCS) pipelines in Louisiana. The bill was prefiled in April 2025 and is currently under consideration by the Committee on Ways and Means. The fiscal note referenced suggests there are budgetary implications worth examining.

Why is this important

Carbon capture and storage is an emerging industry with significant infrastructure development potential, particularly in Louisiana given its existing pipeline networks and industrial base. A tax on CCS pipeline operations could affect investment decisions, operational costs, and Louisiana's competitiveness in this growing sector while potentially generating state revenue. This reflects broader policy tensions between climate-related initiatives and economic development incentives.

Potential points of contention

  • Industry competitiveness: CCS is still developing with uncertain profitability; a new tax could discourage companies from building or operating pipelines in Louisiana compared to other states
  • Climate policy alignment: Some may view the tax as counterproductive if it discourages carbon capture technology adoption, while others may argue any industrial activity should be taxed fairly
  • Revenue vs. incentives trade-off: The state must balance generating tax revenue against potentially losing economic development opportunities and jobs in the emerging CCS sector

Compiled from official sources — confirm details with the bill’s official record.

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